Questions about BT's and the App'ing/approval process.

[Lucid08]

In reading thru several threads I am left with more questions about the BT process than I can find answers for..lol.

I've seen threads where someone is declined for cards due to having too high revolving balances, and I've seen threads where people with high revolving balances are approved for much higher limit cards and end up BT'ing everything and come out smelling like a MyFico Rose due to the util decrease and additional CL. I realize that credit report data has a lot to do with approval, but I also know the effects that having a high Utilization has on ones credit score. Do CC issuers take into consideration the score increase that would occur from a BT and the addition of a higher CL card, or is it a matter of some companies just dont care about utilization?

Also: Can you have high revolving utilization(individual and total), say above 90%, and still have a decent credit score?

[Anonymous]

It's the game of profit & risk!

Regarding balance transfers-- assessing risk is big business. Both the risk of default, and ability to repay play a large role in whether or not someone is going to get more credit to either reallocate or take on more debt, or be shut down entirely.

High overall utilization will always have a score lowering impact. However, how much greatly depends on the individual credit profile. For example, someone with 25 years of perfect payment history, and an AAoA of 20 years, and no other negative factors isn't going to drop into FICO flames if they suddenly have a spike in UTI in the way that someone with a 7 year history, and AAoA of 2.5 years, and recently opened accounts would.

[chia04]

Long time lurker, but yes, you can have a decent score with high utilization.  I'm young, with an oldest account at about 8, average around 5, with utilization over 90 percent.  My FICO hovers around 700, sometimes a little higher.  But, I've never been late on anything, have a good mix of credit and no negatives.

[Creditaddict]

I think as your util goes over the 50% your success of approval for more credit are going to start dropping considerably even with scores over 700.